Cycle Trading

The jobs numbers came in hot on Friday, causing the dollar to form a huge bullish reversal candle.

Friday was day 17, which is early to expect the DCL to form. However, the dollar closed convincingly above both the 200 day MA and the 10 day MA to signal the new daily cycle. We will use a swing low and close above the 50 day MA to label day 17 as the early DCL. The dollar is currently in a daily downtrend.  But a close above the upper daily cycle band will end its daily uptrend and begin a new daily uptrend. A close above the upper daily cycle band will also indicate that the ICL is set.

In the Weekend Report I will breakdown what the hot jobs numbers means for the dollar and its impact on gold and precious metals.